2015 BMW X5M Lease End Decision...

[BMWOO7]

Hello,

Would like to get some thoughts from others here as to what you might do or any suggestions... I've read allot of information that has been posted, but would like to get some feedback as to what folks would do in this situation.

Lease is coming up on July 24th 2018. Considering purchasing it outright from BMWFS. Other option is to purchase a new 2019 BMW X5 when they start coming out in the next few months. We don't drive much, thus the low mileage, which is actually from when we first purchased it (was driving into the office daily, now work full time from home).

2015 BMW X5M
~9500 Miles (June 10th 2018)
Donington Grey
Silverstone Full Merino Leather
Driver Assistance Plus
Executive Package
Parking Assistant
Enhanced BT
NightVision
MSRP: $112,295.00

Dealer provided info when asked about purchasing outright:
Residual Buyout: $65131.00
Manheim Auction: $69327.45
Dealer Retail: $70K's

Was told that if I decided to purchase it outright:

- They would charge me $500 over buyout price for processing the paperwork
- Extended warranty $2200 1yr, $4500 2yr
- There is NO 'negotiating' a lower buyout price, period

2015 BMW X5M

I've posted some pictures of the car taken yesterday for any reference.

As I'm not driving that much anymore, I don't really 'need' an X5M as usually my wife drives it to the grocery store and back, hence looking at a 2019 BMW X5 MSport.

Thank you kindly for any and all feedback.

[Apple Corps]

Have you not already answered your own question?

[Bluesummer]

I would order a 2019 X5 and use that as a leverage to extend your current lease up to 6 months (or whenever the new car arrives). This can be done through a phone call with BMWFS after you got an order number from your dealer.

[LoganTheDriver]

"There is NO 'negotiating' a lower buyout price, period"

That is not true. The dealer may have told you that, but they are wrong... as usual. When BMWFS takes an end of lease car, they sell it at auction. Almost always for less than the price you can buy it from them at at the end of the lease. So you can offer BMWFS less and they might take it because it saves them the hassle of having to sell it at auction and taking a lower price at auction.

[PatrickC23]

I will face this dilemma in 11 months, with possibly less miles used. But if not negotiable, no chance I'd buy it out.

[trev230]

Same boat here. I have 6 months left. My residential is $61,000. I'll most likely be around 28K miles by that time which is well below my allotted mileage. This is the only vehicle I have ever owned that I would want to keep. It has been bulletproof and is the best daily driver I could ever wish for.

[kimi_fan]

While there is no harm in trying to negotiate a better price through BMWFS or the dealer, a well maintained and low mileage lease return should (in theory) be worth more than the buyout price. The buyout on your car is less than auction, so in that case why wouldn't the dealer simply buy the car themselves and run through auction and make a few quick $'s?

I tried this with a Mini Cooper S back in the day and they told me the same thing and stuck to it - even after calling BMWFS directly. I was only looking to buy the car to resell as it only had 12,000 miles and they were new and hard to find at the time. I ended up buying at the buyout price, although I don't recall any $500 charge to complete the paperwork. In fact, I think they did it for free. Ended up making $5k off of it when it sold the next week (well, should say made $5k back of what I didn't use out of the lease payments over 3 years).

[BMWOO7]

Thanks for the feedback. I haven't really talked to any other dealers about the lease end buyout details as they all want you to come in and buy something new (and I get it, they are in the business to do just that).

The dealer I did have an email conversation with, provided these figures and is giving me the 'we cannot buy it for less than you can' line. I won't buy the car from these guys as they are the type of dealership to try and take you for what they can and they don't even care to hide it (as compared with the numerous other BMW dealers in the Chicago area).

The only reason I bought my X5M from this dealer was that the car was ordered by someone and they then backed out before the car came in, so they had discounted it 10% and this was in July of 2015 when the X5M's were new to the market and just hitting the dealerships.

Has anyone worked with any of the Forum Dealers here to negotiate an end of lease buyout?

My hopes were that I'd either be able to buyout the car for less, or, buy the car at the lease end buyout price with a CPO extended warranty.

[Bluesummer]

Originally Posted by BMWOO7

Thanks for the feedback. I haven't really talked to any other dealers about the lease end buyout details as they all want you to come in and buy something new (and I get it, they are in the business to do just that).

The dealer I did have an email conversation with, provided these figures and is giving me the 'we cannot buy it for less than you can' line. I won't buy the car from these guys as they are the type of dealership to try and take you for what they can and they don't even care to hide it (as compared with the numerous other BMW dealers in the Chicago area).

The only reason I bought my X5M from this dealer was that the car was ordered by someone and they then backed out before the car came in, so they had discounted it 10% and this was in July of 2015 when the X5M's were new to the market and just hitting the dealerships.

Has anyone worked with any of the Forum Dealers here to negotiate an end of lease buyout?

My hopes were that I'd either be able to buyout the car for less, or, buy the car at the lease end buyout price with a CPO extended warranty.

you don't have to return the car to the same dealer you got it from

[CylinderHead]

Looking for a x5m... if anyone is looking for a buyer...

[PatrickC23]

Actually while on the subject, this is my first lease. How does it work, do they reach out to you in advance or are you supposed to reach out? Looking forward to getting my MSDs back.

[aas5]

Don't forget that you will have to pay sales tax on the buyout amount so make sure to factor that in if you decided to sell yourself later. If I were you, I would probably just extend the lease as long as you can with BMW and see what deals you can get later but you may need to consider a different model as the new x5M won't be out until mid 2020 at the earliest.

[kimi_fan]

Originally Posted by PatrickC23

Actually while on the subject, this is my first lease. How does it work, do they reach out to you in advance or are you supposed to reach out? Looking forward to getting my MSDs back.

Yes, BMWFS will also send you a kit so you can check the car for acceptable wear and tear and/or calculate the possible lease end charges. That being said, I've usually rolled into another lease and the dealer or BMWFS have been very lenient on charging me for anything related to wear and tear. Over mileage is obviously not really negotiable, although if you know you'll be over you can pre-pay at lower per mile rate as long as you call before the lease is up. Can't remember if it was 6 months out, or if you can only do that within the last 90 days...

[BMWOO7]

I'd have to look at which documentation it was from BMWFS, but it indicated that you'd also be 'eligible' for a credit with very low miles, as in my situation.

Lease was for 10K miles/yr and after 3 yrs I'm at ~9600 miles.

Again, I forget the details, but hadn't ever heard of this before.

Wife and I went out to a couple dealerships today and while there are allot of nice BMW's out there, I didn't really see anything that I would want to change into at this point.

I'm thinking I'm going to do the buyout from BMWFS at this point.

I also want to get in for service as it needs an oil change and I don't know what it is, but I 'think' I'm hearing a noise at slow speeds (as in parking lots) that almost sounds like the suspension is loose. I know how crazy that sounds, but that's about the only way I can describe it...

Anything else I should / could get done at the service appointment? Partly I ask as I'm not sure if the 'free maintenance' will continue once I buy the car outright from BMWFS. I was going to ask about new brakes, but they aren't that worn at just ~9600 miles...

Thanks kindly...

Originally Posted by kimi_fan

Yes, BMWFS will also send you a kit so you can check the car for acceptable wear and tear and/or calculate the possible lease end charges. That being said, I've usually rolled into another lease and the dealer or BMWFS have been very lenient on charging me for anything related to wear and tear. Over mileage is obviously not really negotiable, although if you know you'll be over you can pre-pay at lower per mile rate as long as you call before the lease is up. Can't remember if it was 6 months out, or if you can only do that within the last 90 days...

[dkhm3]

thinking about doing this as well when my lease is up. I just don't see anything out there I want to get-

Keep us informed. I am curious if you can negotiate a lower price for the buyout.

[BMWOO7]

I'm literally down to one week away from lease end this Tuesday (lease end is the 24th).

I talked to my local dealer and they had no interest in wanting to assist me in trying to negotiate a lower buyout price. They told me to contact BMWFS directly and speak with them.

So I'm going to call tomorrow and see what I can do... I'll post back as soon as I have the final details...

[Mexecutioner]

I wish we could just buy these cars online and not have to deal with the dealers at all. At lease the illusion of having someone to take care of you as a customer would not exist.

[BMWOO7]

Actually... and I'll find out this week, but I think we can purchase it online without having to see a dealer.

If you go to your "Account Management" page, they have all the information to request a payoff price and the process you need to follow to complete it.

This being my first time going through this process, I'm going to call BMWFS this week and see if there is anything I'm missing, but as of this point, from what I've seen so far, you can do it all yourself online, which makes sense that they would automate the process so that they don't have to staff additional people to assist with processing it...

Originally Posted by Mexecutioner

I wish we could just buy these cars online and not have to deal with the dealers at all. At lease the illusion of having someone to take care of you as a customer would not exist.

[fbuzila]

Originally Posted by BMWOO7

Actually... and I'll find out this week, but I think we can purchase it online without having to see a dealer.

If you go to your "Account Management" page, they have all the information to request a payoff price and the process you need to follow to complete it.

This being my first time going through this process, I'm going to call BMWFS this week and see if there is anything I'm missing, but as of this point, from what I've seen so far, you can do it all yourself online, which makes sense that they would automate the process so that they don't have to staff additional people to assist with processing it...

wondering if you can negotiate with BMWFS a lower payoff

[SNAGuy]

Originally Posted by LoganTheDriver

"There is NO 'negotiating' a lower buyout price, period"

That is not true. The dealer may have told you that, but they are wrong... as usual. When BMWFS takes an end of lease car, they sell it at auction. Almost always for less than the price you can buy it from them at at the end of the lease. So you can offer BMWFS less and they might take it because it saves them the hassle of having to sell it at auction and taking a lower price at auction.

While what you're saying might have been true in the past, it has been reported and confirmed on the "other" BMW board that going forward the lessee of the vehicle can only purchase the vehicle at RV.

As of July program changes, this process will change for someone wanting to buy their OWN car off lease.

The basic change is, instead of a person being able to work with a dealer to buy the car for "an amount" over the dealers market price, now a customer only gets a few hundred dollars off the RV of the car.

Additionally, at least from how it was explained to me, if a center is found to have sold a car to the person leasing it, or the same household, etc, for less than the "RV minus the XXX discount given to someone buying their own car", the center would be charged back the difference between the "dynamic price" (market price) and the RV + 500.

In effect, this means that a center can not currently negotiate on a lease buyout, as there is nothing there for them to negotiate, when selling back to the same person. Its the "RV minus a couple hundred to a couple thousand depending on the vehicle".

[PatrickC23]

Is extending the lease an option?

[BMWOO7]

One of the two dealers I talked to mentioned something about that but they weren't real clear...

Also, the last dealer indicated that they didn't want to get involved with it as he said "all dealers have been told that they can no longer offer the customer a lower price and split the difference with the customer on the lower price".

From talking with them, it sounded like they were a dealer that had been doing this.

I'll be calling them tomorrow as I didn't get a chance today before they closed.